Section 25A: Power of the State Bank to collect and furnish credit information

Plain-Language Summary

A general explanation to aid understanding. The official statutory text appears below.

This section defines the following terms used in The Banking Companies Ordinance, 1962: • borrower — any person to whom any credit limit has been sanctioned by any banking company, whether availed of or not, and includes-- (i) in the case of a company or corporation, its subsidiaries; (ii) in the case of a Hindu undivided family, any member thereof or any firm in which such member is a partner; (iii) in the case of a firm, any partner thereof or any other firm in which such partner is a partner; and (iv) in the case of an individual, any firm in which such individual is a partner; and • credit information — any information relating to-- (i) the amounts and the nature of loans or advances or other credit facilities, including bills purchased or discounted, letters of credit and guarantees, indemnities and other engagements extended by a banking company to any borrower or class of borrowers; (ii) the nature of security taken from any borrower for credit facilities granted to him; (iii) the guarantees, indemnities or other engagements furnished to a banking company by any of its customers; and (iv) operations or accounts in respect of loans, advances and other credit facilities referred to in this clause This is the official statutory text, shown as written — it is not a paraphrase or a legal opinion. Consult a verified lawyer to see how it applies to your specific situation.

3[25A. Power of the State Bank to collect and furnish credit information.-- (1) Every banking company shall furnish to the State Bank credit information in such manner as the State Bank may specify, and the State Bank may, either of its own motion or at the request of any banking company, make such information available to any banking company on payment of such fee as the State Bank may fix from time to time: Provided that, while making such information available to a banking company, the State Bank shall not disclose the names of the banking companies which supplied such information to the State Bank: Provided further that, a banking company which purposes to enter into any financial arrangement which is in excess of the limit laid down in this behalf by the State Bank from time to time shall, before entering into such financial arrangement, obtain credit information on the borrower from the State Bank. (2) Any credit information furnished by the State Bank to a banking company under sub- section (1) shall be treated as confidential and shall not, except for the purposes of this section or with the prior permission of the State Bank, be published or otherwise disclosed. (3) No court, tribunal or other authority, including an officer of Government, shall require the State Bank or any banking company to disclose any information furnished to, or supplied by, the State Bank under this section. Explanation.-- For the purpose of this section, -- (a) "borrower" means any person to whom any credit limit has been sanctioned by any banking company, whether availed of or not, and includes-- (i) in the case of a company or corporation, its subsidiaries; (ii) in the case of a Hindu undivided family, any member thereof or any firm in which such member is a partner; (iii) in the case of a firm, any partner thereof or any other firm in which such partner is a partner; and (iv) in the case of an individual, any firm in which such individual is a partner; and (b) "credit information" means any information relating to-- (i) the amounts and the nature of loans or advances or other credit facilities, including bills purchased or discounted, letters of credit and guarantees, indemnities and other engagements extended by a banking company to any borrower or class of borrowers; (ii) the nature of security taken from any borrower for credit facilities granted to him; (iii) the guarantees, indemnities or other engagements furnished to a banking company by any of its customers; and (iv) operations or accounts in respect of loans, advances and other credit facilities referred to in this clause.

Effective date: 1962-06-07

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